Chicago physicians being taxed by state/Feds for value of samples!

[anonymous]

In Chicago the DM has begun to suggest to physicians will soon be taxed on the samples in 2017 he/she dispenses to his/her patient. I fear that the Sunshine Act/tax reform act will be the end of pharmaceutical reps, patient samples, and lunch time educational programs. What a shame.

It is interesting that the same congressional leaders who freely take campaign contributions from big business, who lunch at pricey restaurants with lobbyists, and who take trips sponsored by those seeking favor, passed this act. The year 2017 signals the end of business as usual for my profession and income taxes for sample distribution to physicians.

 

[anonymous]

You're an idiot. If you want to cause fear in the industry, you'll have to come up with something better than this nonsense.

 

[anonymous]

OK genius, how does this work? Physician takes a sample from a salesman, net cost $0. Physician offers the sample to their patient as part of an office visit which will cost the same whether the patient takes the sample or not. Additional physician revenue is $0.

Income is defined as revenue minus the cost of ordinary and necessary expenses. Here the physician has incremental revenue of $0 and incremental cost of $0. How much tax is assessed on $0 minus $0?

Now, if the physician charges the patients for the drug, or adds on a dispensing fee over an above the usual and customary charge for an office visit then that would create income for the physician, but how many offices do that?